What if I told you that there is a cryptocurrency that is ruled by a cohort of Fortune 500 companies like Alphabet and IBM, used for a range of cool projects and use cases, and can be purchased for as little as $0.10 per token? And one more thing – this is is not a blockchain. That’s exactly what Hedera Hashgraph (HBAR -1.82%† is.
What is Hedera Hashgraph?
Hedera Hashgraph is a distributed ledger of transactions just like other cryptocurrencies, but Hedera differs from its peers in that it does not use blockchain technology. Hedera will instead use a consensus algorithm called hashgraph, which was developed by co-founder, computer scientist Lemon Baird. Hashgraph technology is patented, so Hedera is unique in that it is the only cryptocurrency to use this technology. In a hashgraph, the different nodes in the network “comment” with each other to create a time-tracked record of all transactions.
Fast, cheap and powerful
Hedera says this hashgraph technology is “a faster and more secure alternative to blockchain mechanisms.” Hedera has a throughput of 10,000 transactions per second with finality in seconds. The other benefit of using Hedera is its low cost – these transactions cost a fraction of a cent. This combination of low cost and impressive performance has led to many projects in the Hedera ecosystem.
Hedera is backed by a number of large, forward-thinking companies, both inside and outside the tech industry. Hedera is overseen by a board of directors made up of executives from tech giants such as Alphabet, Service now (A GIFT -0.02%†, and IBM; manufacturers love Boeing and Avery Denison† and prominent global telecommunications companies such as: Deutsche Telekom and Tata Communication†
From streams to drones
It’s great to have this armada of Fortune 500 companies on board, but there’s no point if they don’t grow the project. Cryptocurrency skeptics sometimes say that crypto is a “solution looking for a problem”. But Hedera is already being used in many real use cases today and many innovative projects are already being built on Hedera.
For example, Tune.FM is an integrated streaming service on Hedera that says it pays artists on its platform up to 90% of streaming revenue. This generous payout ratio reduces the payout of traditional streaming services. Tune.FM has used Hedera to store and issue its JAM tokens, which can be used to compensate artists through micropayments, as well as NFTs that can be used by artists to raise funds and give fans access to one owned artwork or a limited release by a favorite artist. Tune.FM chose to rely on Hedera for this project due to its low transaction costs and near instant settlement times.
Outside of the music world, Neuron is experimenting with using Hedera to track flight information from drones, and Avery Dennison’s atma.io cloud platform will partner with Hedera to help companies track the footprint of their products throughout their lifecycle using a distributed ledger. Technology.
Is Hedera a bargain?
Thanks to both its consensus approach and board packed with leading companies, as well as the fact that it already seems to be gaining traction across a wide range of industries, Hedera is uniquely positioned in the crypto space. That’s why I consider Hedera to be a good addition to a long-term cryptocurrency portfolio for risk-tolerant investors.
It is important to note that we are still in the very early stages of cryptocurrency adoption, so this is likely to be a volatile, high-risk, high-yield investment. We don’t know who the winners and losers will be. However, based on its good faith, I think Hedera is a solid choice to include in a basket of cryptos that could one day be much bigger than they are today.